FAQs Related to Pre-Owned Tractor Loan

• December 7, 2023April 24, 2024

A pre-Owned Tractor Loan can help you buy a tractor through a hassle-free process to give wings to your dreams of owning your own tractor for commercial or agricultural business. This blog features FAQs related to Pre Owned Tractor loans to clear all your doubts.

Tractor has become an integral part of the agriculture business. According to research, the farming households in the country are roughly 13 crores, out of which the houses with tractors are only around 80 lakhs. This indicates not every farmer can buy new tractors which increases the importance of pre-owned tractors which are available at lower costs. This help farmers save a big chunk of money. That’s where you require loan services. 

Have doubts related to pre-owned tractor loans? Through this blog, you can get all the answers related to the same.

FAQs Related to Pre-Owned Tractor Loan 

Frequently asked questions related to pre-owned tractor loans are here.

1. What are pre-owned tractor loans?

   Pre-owned Tractor loans are simply loans provided to farmers or businessmen to buy pre-owned tractors for agriculture or commercial purposes.

2. Are tractor loans available to only farmers?
   

   Tractor loans are available to farmers and non-farmers who use tractors for farming or commercial use.

3. What are the factors you must consider to apply for pre-owned tractor loans?

• Interest Rate: One essential factor is considering the interest rate charged by the lender. It may range from 10.55% p.a. which could go up to a high of 23.95% p.a. Several factors determine the kind of interest rate charged like the loan amount, duration of the loan, etc.
• Loan Duration: When you opt for a short-term loan, it is easier to pay the loan as the interest over the loan repayment will be low. You must always analyze your repayment capacity and choose the best plan for yourself.
• Additional charges: Always keep in mind the extra charges you might have to pay like documentation fee, processing fee, agent fee (if there is any), etc. All these factors may add up to your overall loan cost. We provide pre-owned tractor loans at very competitive rates with no hidden additional charges.
• Prior credit history: Your prior credit history (if any) must be satisfactory or you must have an amount/documents to show that you will be able to repay the loan without any trouble.
  
• What documents are required when applying for pre-owned tractor loans?

There are different criteria and documents required while applying for pre-owned tractor loans. Generally, the main documents required are:

• The loan application form
• An identity proof (pan card etc)
• Address proof (Aadhar card, etc)
• Income proof (land records, income and expenditure statements, etc)
• Documents that support the ownership of the mortgage.
• Other relevant documents like duly executed loan documents, original invoices, etc.
  

5. What are the benefits of Used Tractor loans?  

1. Less burden on pocket: Pre-owned tractor loans are very customer friendly. They are designed to help farmers or business owners according to their requirements 
2. Flexible repayment options: When you opt for pre-owned tractor loans, the repayment of the loan is very flexible, depending on the type of loan, the customer’s income, and the duration of the loan.
3. Pan-India Reach: The pre-owned tractor loans are available all over India reaching the rural parts.
4. What is the maximum loan amount I can borrow to purchase a pre-owned tractor?

Loans may vary from each other depending upon NBFC. The maximum loan you can get for the pre-owned tractor is 80-95% of the tractor’s price.

Why choose Kogta Finance for Pre Owned Tractor Loan

Here are some of the reasons to choose Kogta Finance for Pre Owned Tractor Loan:

• We provide easy and customized solutions for your pre-owned tractor loan needs. 
• With minimum documentation, your experience with us will be hassle-free. You will be guided by us for all the required documents, how to fill them, and what to do and what not to do, which sets up apart from the other lenders.
• We provide the most reasonable interest rate in the market with instant approvals and cater to the population that requires these loans the most.
• Expert assistance is available at every step of the process, wherein the best pre-owned tractor model is provided depending on your personal needs to grow your agri-business.

Conclusion

While choosing a pre-owned tractor loan, it is important you consider all the factors listed in this blog so that you can avail the best benefits. Due to easy access to loan facilities, one can easily avail pre-owned tractor loan through minimal process and documentation.